71 MEPs call for transfer of frozen Russian Central Bank accounts to EU structure management

A group of 71 Members of the European Parliament, representing six political factions, has sent a letter to the European Union leadership calling for the inclusion of a transfer of frozen Central Bank of Russia accounts to a special EU structure within the upcoming financing proposal for Ukraine for 2027. The document dated Thursday, November 12, seen by DW, is addressed to the Prime Minister of Ireland — the country holding the presidency of the Council of the EU — Micheál Martin, President of the European Council António Costa, European Commission President Ursula von der Leyen, EU High Representative for Foreign Affairs Kaja Kallas, and European Commissioner for Economy Valdis Dombrovskis. The authors of the letter also called for the Council of the EU to approve the transfer of the accounts by the end of the current year.

A reserve in case of funding gaps

The signatories insist that the accounts should be placed under EU control even if funding for 2027 can be secured from other sources. As intended, the frozen assets could serve as the basis for a reserve mechanism should international support for Ukraine prove insufficient. The authors also point out that EU control over the assets would prevent them from being disposed of as part of a potential peace deal concluded without European participation. The letter was prepared by Thijs Reuten, Nathalie Loiseau, Karin Karlsbro, and Jean-Marc Germain.

Mechanics of The Russian Transfer initiative

The Russian Transfer initiative involves moving frozen accounts of the Russian Central Bank from European depositaries to a special EU structure, along with obligations to the account holder. Ownership of the funds would remain with the Russian Central Bank, while the European Union, according to the authors, would compensate for potential losses associated with the transfer of the accounts. According to the data cited in the letter, approximately 185 billion euros of the roughly 210 billion euros of Russian Central Bank assets frozen in the European Union are held in the Belgian depositary Euroclear.

Background and context

In September of this year, 122 MEPs already called for a return to discussions on frozen Russian assets and supported the transfer of accounts to a special EU structure acting as their custodian. “We are writing again because it is time to act,” the authors of the new letter note against the backdrop of the European Commission preparing proposals to cover Ukraine's financial needs in 2027. In the new appeal, the deputies ask for this step to be included directly in the financing proposal package.

Brussels' reaction and the November 26–27 summit

European Commission President Ursula von der Leyen stated in Dublin on November 12 that the Commission would present a proposal for financing Ukraine for 2027 before the special EU summit to be held on November 26–27 in Brussels. In a joint statement following a meeting with Volodymyr Zelensky, von der Leyen and António Costa confirmed that EU leaders would discuss the proposal at the summit. Thus, the MEPs' initiative falls within the window for preparing key decisions, which increases the chances of its inclusion in the final text.